As well as Del some machines need F2 to be pressed to enter the BIOS setup. Anyway the screen should read "Press [key] to enter setup" at some time during startup. Also like Icewolf said some BIOSs let you boot from the CD pressing another key without need of changing the BIOS for subsequent startups.
Just don't panic, the only reason the CD isn't booting now on its own is because the BIOS looks for default in the hard drive for an operating system, and if it finds one it doesn't bother to look in the CD unless you tell it to.
Also it's very strange that you're asked for a password you don't have, even more so since it seems from what you say that all software was legit.
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so thinking that they all should be installed...[/b]
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It's my philosophy to monitor very closely what's installed in my machine, so I don't install anything unless I need it.